Xero is an online accounting software that allows you to create custom, professional invoices and keep track of your payments in order to know how your business is doing at anytime.
Export invoices to Xero
To export invoices from Paymo to Xero, please follow the next steps:
1. First, make sure you’re logged into Xero.
2. Sign in to Paymo → click on your profile (bottom left corner) → Add-ons & Integrations → Click on Connect to Xero.
If you’re already logged into Xero, Paymo will automatically identify your account and inform you about the type of data it needs.
3. Then, head over to Accounting on the left side menu in Paymo → Invoices → Select an Invoice → Click on the Export to button → Xero.
4. What’s left is to match the client in Paymo with the contact in Xero. If the contact doesn’t exist in Xero, you can add them from the dropdown menu like in the example below or just hit Ctrl/Command + Enter.
Then specify under which Xero account should all the invoices items belong to. For this scenario, I've chosen the Sales account.
HEADS UP: It is your responsibility to categorize your own account types in Xero. So make sure that the tax value applied for the account in Xero (say 6.25% - Texas’ state tax) is set up correctly and matches the value of the invoice tax in Paymo.
To set up a tax in Xero, go to Accounting → Advanced → Tax rate → New tax rate.
To apply that tax to an account, go to Accounting → Advanced → Chart of accounts → Select an account → Click on one to edit the account details → Tax → Select the applicable tax.
With the client and account type matched, click on Export to Xero.
A notification will let you know that the invoice together with its ID has been successfully exported.
Here’s how it should look like in Xero.
- If you delete an already exported invoice in Xero, it’s also going to be deleted in Paymo. This doesn’t work the other way around though.
- If you send an invoice in Xero, its status won’t be updated automatically in Paymo.
- If you want to export the invoice number to Xero as well, make sure it doesn't go over 22 characters. If this happens, it won't be displayed.
Sync payments back to Paymo
You can also receive payments on your current invoice and sync them back to Paymo. To do this, follow the next steps:
1. From the invoice that you’ve already exported, click on Add payment.
2. Specify the payment day, followed by the account type, then add the amount paid.
As you can see, the payment has been already registered in Xero (check the Paid column).
All you need to do is wait for a few minutes until the servers from Xero fetch the changes and sync them back in Paymo.
The received payment appears in Paymo under the View Payments button of the invoice.
NOTE: The status of the invoice (sent) will be updated automatically, so you don’t need to send it for the View Payments to show up.
- If you delete an already imported received payment in Xero, it's also going to be deleted in Paymo. This doesn’t work the other way around though.
- If you add a payment in Paymo, it won’t be replicated into Xero.
Disconnecting the Xero integration
If you want to disconnect the integration from Xero, make sure you also disconnect it from Paymo afterwards as well.